The Study On China’s OFDI Location Choice In "the Belt And Road" Strategy

In September and October 2013, our government has proposed the strategic concept of building "the Silk Road Economic Belt" and "the 21st-Century Maritime Silk Road". China’s put forward the strategy to strengthen cooperation with neighboring countries, and "the Belt and Road Initiative" has been widely supported and actively participated by Asia, Europe and Africa countries. This strategy is not only conducive to building a new pattern of China’s opening up, but also brings new development opportunities for China and the countries along the Belt and Road. Outward foreign direct investment (OFDI) is an important content of the strategy. The implementation of the strategy provides a great significant opportunity for different types of enterprises to "go out". This paper focuses on the study of location choice for China’s direct investment in the countries along the Belt and Road, and provides decision-making reference about China’s foreign direct investment location choice referring to existing cooperation and preferential policies.Based on location theory and location choice thought of foreign direct investment theory, first of all, this paper summarizes the location advantages of 16 countries along the Belt and Road. Then this paper uses panel analysis to examine the overall situation of China’s direct investment to these countries between 2005 and 2013, and then uses the grey relation analysis to compare the association degree between the factors of location advantage of each country and China’s direct investment. At last, according to empirical results, this paper presents recommendations about the location choice of China’s foreign direct investment in the countries along the Belt and Road.